The "Tropa" company produces special pills to relieve stressful situations during exams.

The company manages the inventory using the FIFO method.

Below are data on the production process, the factory and the production activity in December 2020:

The production process is carried out in one department. In this department, all materials are put into the production line at the beginning of the process. At the end of the process the units are ready for sale.

Production activity in December 2020:

A. Opening stock in process: 60,000 units that are 100% perfect in terms of materials

and 70% in terms of conversion.

B. Put into production: 720,000 units.

third. Closing inventory in process: 150,000 units that are 100% complete in terms of materials and 40% in terms of conversion.

The cost of the opening inventory in the process: NIS 650,000.

Current costs invested in the production process in December 2020:

Material costs - NIS 1,008,000

Conversion costs - NIS 583,200

2. What is the cost of an equivalent unit in terms of conversion?

1.2

0.85

0.95

0.9

1